PennantPark Investment Corporation Announces Upsize of Joint Venture
PennantPark Investment (NYSE: PNNT) has announced an expansion of its investment in PennantPark Senior Loan Fund, (PSLF), a joint venture with Pantheon Ventures. PNNT will invest an additional $52.5 million, while Pantheon will contribute $75 million, adjusting their ownership to 54.8% and 45.2% respectively. The JV is also increasing its senior secured credit facility from $325 million to $400 million, allowing it to scale its investment portfolio to over $1.5 billion. This represents a nearly $500 million increase in investment capacity.
The expansion aims to capitalize on the attractive core middle market, which has been generating strong returns for the JV over the past four years. PNNT CEO Art Penn emphasized that this move will benefit shareholders through investments in today's attractive vintage of core middle market senior secured loans.
PennantPark Investment (NYSE: PNNT) ha annunciato un'espansione del suo investimento nel PennantPark Senior Loan Fund (PSLF), una joint venture con Pantheon Ventures. PNNT investirà ulteriori 52,5 milioni di dollari, mentre Pantheon contribuirà con 75 milioni di dollari, modificando le loro partecipazioni al 54,8% e al 45,2% rispettivamente. La JV sta anche incrementando la sua linea di credito senior garantita da 325 milioni a 400 milioni di dollari, consentendole di ampliare il suo portafoglio di investimenti a oltre 1,5 miliardi di dollari. Ciò rappresenta un incremento di quasi 500 milioni di dollari nella capacità di investimento.
L'espansione mira a capitalizzare sul core middle market attraente, che ha generato forti ritorni per la JV negli ultimi quattro anni. Il CEO di PNNT, Art Penn, ha messo in evidenza che questa mossa beneficerà gli azionisti attraverso investimenti nell'attuale vintage attraente dei prestiti senior garantiti del core middle market.
PennantPark Investment (NYSE: PNNT) ha anunciado una expansión de su inversión en el PennantPark Senior Loan Fund (PSLF), una joint venture con Pantheon Ventures. PNNT invertirá 52,5 millones de dólares adicionales, mientras que Pantheon contribuirá con 75 millones, ajustando sus participaciones al 54,8% y 45,2% respectivamente. La JV también aumentará su línea de crédito senior garantizado de 325 millones a 400 millones de dólares, permitiéndole escalar su portafolio de inversiones a más de 1,5 mil millones de dólares. Esto representa un aumento de casi 500 millones de dólares en la capacidad de inversión.
La expansión tiene como objetivo capitalizar el atractivo mercado medio central, que ha estado generando fuertes retornos para la JV en los últimos cuatro años. El CEO de PNNT, Art Penn, enfatizó que este movimiento beneficiará a los accionistas a través de inversiones en la atractiva vintage de hoy de los préstamos senior garantizados del mercado medio central.
펜넌트파크 인베스트먼트 (NYSE: PNNT)는 팬세온 벤처스와의 조인트 벤처인 펜넌트파크 시니어 론 펀드(PSLF)의 투자를 확장한다고 발표했습니다. PNNT는 추가로 5,250만 달러를 투자할 예정이며, 팬세온은 7,500만 달러를 기여하여 각자의 지분을 54.8%와 45.2%로 조정하게 됩니다. 또한 JV는 시니어 담보 신용 시설을 3억 2,500만 달러에서 4억 달러로 증가시키며, 투자 포트폴리오를 15억 달러 이상으로 확장할 수 있게 됩니다. 이는 거의 5억 달러의 투자 능력 향상을 의미합니다.
이번 확장은 매력적인 핵심 중간 시장을 활용하고자 하는 것으로, 지난 4년간 JV에게 강력한 수익을 창출해왔습니다. PNNT의 CEO Art Penn은 이 조치가 현재 매력적인 핵심 중간 시장 시니어 담보 대출에 대한 투자를 통해 주주들에게 이익이 될 것이라고 강조했습니다.
PennantPark Investment (NYSE: PNNT) a annoncé une expansion de son investissement dans le PennantPark Senior Loan Fund (PSLF), une coentreprise avec Pantheon Ventures. PNNT va investir 52,5 millions de dollars supplémentaires, tandis que Pantheon contribuera à hauteur de 75 millions de dollars, ce qui ajuste leur propriété à 54,8 % et 45,2 % respectivement. La JV augmente également sa ligne de crédit senior garanti de 325 millions à 400 millions de dollars, lui permettant d'élargir son portefeuille d'investissements à plus de 1,5 milliard de dollars. Cela représente une augmentation de près de 500 millions de dollars de la capacité d'investissement.
Cette expansion vise à tirer parti du marché intermédiaire core attractif, qui génère depuis quatre ans des rendements solides pour la JV. Le PDG de PNNT, Art Penn, a souligné que cette démarche profitera aux actionnaires grâce aux investissements dans la vintage attrayante actuelle des prêts seniors garantis du marché intermédiaire core.
PennantPark Investment (NYSE: PNNT) hat eine Erweiterung seiner Investition in den PennantPark Senior Loan Fund (PSLF) angekündigt, ein Gemeinschaftsunternehmen mit Pantheon Ventures. PNNT wird zusätzlich 52,5 Millionen Dollar investieren, während Pantheon 75 Millionen Dollar beisteuern wird, wodurch sich ihre Anteile auf 54,8% und 45,2% ändern. Das JV erhöht ebenfalls seine gesicherte Senior-Kreditfazilität von 325 Millionen auf 400 Millionen Dollar, was ihm ermöglicht, sein Investitionsportfolio auf über 1,5 Milliarden Dollar zu erweitern. Dies stellt eine fast 500 Millionen Dollar erhöhte Investitionskapazität dar.
Die Expansion zielt darauf ab, vom attraktiven Kernmittelmarkt zu profitieren, der in den letzten vier Jahren für das JV starke Renditen erwirtschaftet hat. Der CEO von PNNT, Art Penn, betonte, dass dieser Schritt den Aktionären durch Investitionen in die gegenwärtig attraktive Vintage der gesicherten Senior-Darlehen im Kernmittelmarkt zugutekommen wird.
- Expansion of joint venture investment, increasing PNNT's stake by $52.5 million
- Increase in senior secured credit facility from $325 million to $400 million
- Scaling of investment portfolio to over $1.5 billion, representing a $500 million increase in capacity
- Strong returns generated by the joint venture over the past four years
- Potential for increased shareholder benefits from core middle market senior secured loans
- None.
Insights
The expansion of PennantPark Investment 's (PNNT) joint venture with Pantheon is a strategic move that could positively impact PNNT's financial performance. The additional
This upsize allows PNNT to capitalize on the attractive core middle market, potentially leading to enhanced returns for shareholders. The increase in the credit facility to
The expansion of PNNT's joint venture reflects a bullish outlook on the core middle market lending sector. This move suggests that both PNNT and Pantheon see significant opportunities in this space, despite current economic uncertainties. The JV's focus on senior secured loans in the middle market could provide a defensive positioning in case of market downturns.
Investors should note that this expansion comes at a time when many are cautious about economic conditions. PNNT's confidence in deploying additional capital might indicate they've identified a resilient segment within the market. However, it's important to monitor how this expanded JV performs relative to broader market trends and competing investment strategies in the BDC sector.
Joint Venture to Continue to Target the Attractive Core Middle Market
Joint Venture Is Generating Strong Returns
NEW YORK, Sept. 05, 2024 (GLOBE NEWSWIRE) -- PennantPark Investment Corporation (“PNNT”) (NYSE: PNNT) today announced it has agreed to expand its investment in PennantPark Senior Loan Fund, LLC (“PSLF” or the “JV”), its unconsolidated joint venture with the private credit investment business of Pantheon Ventures (UK) LLP (“Pantheon”). This strategic transaction further strengthens the partnership between PNNT and Pantheon, which was put into place over four years ago, and has generated strong returns to date.
PNNT has agreed to invest an additional
In addition, PSLF is increasing its senior secured credit facility provided by BNP Paribas from
“We are proud of the partnership and the strong returns the JV has generated,” stated Art Penn, Chief Executive Officer of PNNT. “The core middle market represents a differentiated investment opportunity for investors in direct lending. The increase in the JV will position PNNT’s shareholders to benefit from investments in today’s attractive vintage of core middle market senior secured loans.”
ABOUT PENNANTPARK INVESTMENT CORPORATION
PennantPark Investment Corporation is a business development company which principally invests in U.S. middle-market private companies in the form of first lien secured debt, second lien secured debt, subordinated debt and equity investments. PennantPark Investment Corporation is managed by PennantPark Investment Advisers, LLC.
ABOUT PENNANTPARK INVESTMENT ADVISERS, LLC
PennantPark Investment Advisers, LLC is a leading middle market credit platform, managing approximately
FORWARD-LOOKING STATEMENTS
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You should understand that under Section 27A(b)(2)(B) of the Securities Act of 1933, as amended, and Section 21E(b)(2)(B) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 do not apply to forward-looking statements made in periodic reports PennantPark Investment Corporation files under the Exchange Act. All statements other than statements of historical facts included in this press release are forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. PennantPark Investment Corporation undertakes no duty to update any forward-looking statement made herein. You should not place undue influence on such forward-looking statements as such statements speak only as of the date on which they are made.
CONTACT:
Richard T. Allorto, Jr.
PennantPark Investment Corporation
(212) 905-1000
www.pennantpark.com
FAQ
What is the new investment amount for PNNT in the PennantPark Senior Loan Fund?
How much is the PSLF credit facility increasing to?
What is the new investment capacity of the PSLF joint venture after the expansion?
What are the new ownership percentages of PNNT and Pantheon in the joint venture?
